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Writer's pictureJuana Hart

Strategies to Improve Engagement and Profits: The Power of Communication

Did you know that companies with highly engaged employees experience a 23% to 33% increase in profitability compared to those with disengaged employees, according to the global analytics firm Gallup? In fact, scientific studies have shown that employee disengagement costs the U.S. economy anywhere from $400 billion to $500 billion annually. When team members are disengaged it's good business to recognize the warning signs early on and employ strategies to improve employee engagement and profits using the power of communication.


One of the key factors is a lack of communication. In today’s rapidly changing environment, effective communication is a critical soft skill that directly impacts a company's bottom line. Recognizing problems early on can help you As a consultant who has worked closely with numerous small businesses, I have witnessed firsthand the detrimental impact poor communication can have on a company, both internally and externally.


Internally, ineffective communication can lead to disengaged employees who are less productive and more likely to spread negativity, impacting the company's bottom line. One of the most challenging aspects of leadership is delivering difficult or bad news. However, these difficult conversations can be managed more effectively by setting a positive tone. Begin by highlighting positive aspects of performance or progress before addressing negative aspects or challenges. Always conclude the conversation by reinforcing the positive and emphasizing opportunities for improvement, showcasing the benefits that both the employee and the organization will gain from implementing these changes. 


The most effective leader fosters an environment of mutual respect by actively listening and responding authentically to employees, thereby building trust within the team.  Maintaining a cohesive team requires constant awareness of internal conflicts and issues that may arise among workers. Addressing those concerns promptly and privately with the individuals involved is essential. While not every problem will have a simple solution, demonstrating a willingness to listen to grievances and working towards resolution can significantly improve employee morale. 


Here are 10 common reasons employees may feel disengaged, along with signs that can help you recognize opportunities to help:


  1. Poor Communication - Ineffective communication can leave employees feeling uninformed and undervalued. Watch for misunderstandings, conflicts, and decreased participation in meetings.

  2. Lack of Recognition or Appreciation -  Employees who feel their contributions go unnoticed may put in less effort, miss deadlines, and withdraw from team activities.

  3. Feeling Overwhelmed - Those struggling with excessive workloads or unrealistic expectations can suffer burnout and disconnect. Look for signs of stress, fatigue, and declining work quality.

  4. Lack of Growth Opportunities - Employees who feel stuck in their roles may get board, show a lack of initiative, and seek opportunities elsewhere.

  5. Lack of Autonomy or Control - Micromanagement or a lack of decision-making authority can stifle employee engagement. Signs can include decreased creativity, resistance to feedback, and a sense of helplessness.

  6. Unclear Expectations or Goals - Employees who don't understand what's expected of them may exhibit signs of confusion, frequent errors, and a lack of focus.

  7. Feeling Undervalued - Employees who feel their compensation or benefits are unfair may become disengaged. Signs include resentment, decreased loyalty, and seeking other employment.

  8. Poor Work-Life Balance - Employees who feel their work interferes with their personal lives may become disengaged, increase absenteeism, and become less productive.

  9. Lack of Trust in Leadership - Employees who don't trust their leaders may show signs of skepticism, resistance to change, and decreased morale.

  10. Toxic Work Environment - A negative or hostile work environment can quickly lead to disengagement resulting in signs of bullying, harassment, and high turnover.


Recognizing these signs early on allows for timely intervention and the implementation of strategies to improve employee engagement and overall organizational success.

As a leader, you can help set the best possible tone for your entire team by maintaining a supportive, positive approach, even in the face of daunting challenges. Studies have shown that non-verbal communication can be just as impactful as the words you use. Therefore, it's important to make eye contact, be attentive, and ensure your facial expressions reflect genuine concern for your employees and commitment to achieving the best possible outcomes.


It's crucial to keep every message on-topic. Time is valuable, and maintaining focus on the issue at hand and the desired outcome will help the team identify challenges, set goals, and implement action plans efficiently and with minimal confusion.


One fundamental rule of communication is to know your audience. Team members come from diverse backgrounds and possess varying levels of experience. Using technical jargon that may not be familiar to everyone can lead to disengagement. Employing common terminology and simple language will help to ensure your message is understood by all, setting the stage for higher engagement and better collaboration.


5 more ways to keep employees well-informed and feeling valued:


  1. Regular Team Meetings to discuss company updates, goals, and progress. Encourage open communication and feedback from employees.

  2. Employee Newsletters highlighting company news, employee achievements, and upcoming events. Involve employees in creating the newsletter to create a sense of ownership and community.

  3. Schedule One-on-One Meetings so managers and employees can discuss individual performance, goals, and any concerns they may have. This demonstrates that their opinions and development are valued.

  4. Employee Surveys can be used to gather feedback on various aspects of the workplace, such as communication, management, and overall satisfaction. Use the feedback to identify areas for improvement and show employees you value their input.

  5. Employee Recognition Programs are a way to acknowledge and reward employees for their hard work and achievements. The rewards can range from public recognition to bonuses, and other incentives that show appreciation for their contributions.


Positive, authentic, and respectful communication with your team can ultimately lead to improved morale, increased productivity, and higher revenues, contributing to the overall success, growth, and sustainability of your small business.


Want to turn your team into a powerful force for brand growth?


Download Juana's free guide Communication Training to Help Employees Achieve Revenue Goals and learn how to unlock their potential. Get your copy here.



Happy team in office

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